Grom Social Enterprises (GROM) vs. Its Rivals Critical Analysis

Grom Social Enterprises (NASDAQ:GROM) is one of 114 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it weigh in compared to its competitors? We will compare Grom Social Enterprises to similar businesses based on the strength of its earnings, analyst recommendations, risk, dividends, valuation, institutional ownership and profitability.

Institutional and Insider Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by insiders. Comparatively, 16.8% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Grom Social Enterprises and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Grom Social Enterprises Competitors	1036	4420	10154	288	2.61

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 16.76%. Given Grom Social Enterprises’ competitors higher possible upside, analysts clearly believe Grom Social Enterprises has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Grom Social Enterprises and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grom Social Enterprises	$4.04 million	-$12.53 million	-0.03
Grom Social Enterprises Competitors	$9.02 billion	$1.93 billion	51.72

Grom Social Enterprises’ competitors have higher revenue and earnings than Grom Social Enterprises. Grom Social Enterprises is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Grom Social Enterprises and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	-309.92%	-71.55%	-57.60%
Grom Social Enterprises Competitors	-154.86%	-42.17%	-8.83%

Risk and Volatility

Grom Social Enterprises has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Grom Social Enterprises’ competitors have a beta of 1.39, meaning that their average share price is 39% more volatile than the S&P 500.

Summary

Grom Social Enterprises competitors beat Grom Social Enterprises on 9 of the 10 factors compared.

Grom Social Enterprises Company Profile

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company that focuses on delivering content in the United States. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.